Recently, the news that “China Merchants Bank will no longer issue new three-year or five-year large deposit credit lines” attracted market attention. To this end, the reporter called the bank's official customer service to seek evidence. The relevant staff responded that at present, the three-year and five-year large-value deposit certificates only have no quota for the time being; they are not discontinued. Also, the reporter learned that some banks in Beijing have stopped selling three-year or even two-year large deposit certificates. However, interest rates for large deposit accounts that currently still have a limited amount have no advantage over time deposits of a fixed period of time. Some banks have interest rates on large three-year deposits at the same time deposits as time-limited deposits, and even some banks have “inverted” interest rates. According to industry insiders, the main reason banks are suspending the addition of new three-year and five-year large deposit credit lines is cost control. Banks reduce high-cost liabilities (such as long-term large deposit statements) and reduce overall capital costs, which is conducive to easing the pressure on interest spreads in the context of declining interest rates. In fact, banks face the problem of weakening demand for loans, resulting in relatively weak asset-side investment. Reducing the absorption of long-term deposits can better manage net interest spreads. As market interest rates change and bank debt structures are optimized, interest rate trends for large deposit certificates will continue to decline in the short to medium term. (Securities Daily)